The characteristics of current assets are (Choose the INCORRECT answer) a) They are converted to cash within a year b) They consist of short and long term financial assets and intangible fixed assets c) They are considered liquid assets d) They are used in the daily operations of the firm

The characteristics of current assets are (Choose the INCORRECT answer) a) They are converted to cash within a year b) They consist of short and long term financial assets and intangible fixed assets c) They are considered liquid assets d) They are used in the daily operations of the firm

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter2: Introduction To Financial Statements

Section: Chapter Questions

Problem 6MC: Which of the following statements is true? A. Tangible assets lack physical substance. B. Tangible...

See similar textbooks

Related questions

Q: On the statement of cash flows, increases and decreases in long-term assets resulting fromcash…

A: Classification of activities in cash flow statement Following are the four classifications of cash…

Q: A liquid asset can be converted to cash quickly without significantly impacting the asset’s value.…

A: Current Ratio: It is a financial ratio which indicates that whether a company is able to pay…

Q: 1. Which of the following items is regarded as a cash flow from operating activities? Cash dividends…

A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by…

Q: Indicate the section (operating activities, investing activities, financing activities, or none) in…

A: Financial statements includes the Statement of Profit or Loss, Statement of Financial Position and…

Q: Indicate the section (operating activities, investing activities, financing activities, or none) in…

A: Cash flow statement is a summary of application and sources of cash during a span of time. And we…

Q: Which of the following would be subtracted from net income when determining cash flows from…

A: Cashflow statement shows the cash inflow or outflow from various activities. Cashflow statement is…

Q: [ Select] Determine the total amount of assets expected to be converted into cash in one year or…

A: As per our protocol, we provide solutions for only first 3 subparts. Kindly repost the question…

Q: 1) The category that is generally considered to be the best measure of a company’s ability to…

A: “Hey, since there are multiple questions posted, we will answer first three questions. If you want…

Q: liquid asset can be converted quickly to cash with little sacrifice in its value. Which of the…

A: The asset classes are generally considered to be the least liquid are: Plant and Equipment: Because…

Q: What are the three (3) key inputs to the valuation process? Does the valuation process ONLY apply to…

A: Valuation Process refers to the steps involved in assigning an intrinsic value for different…

Q: rue or False T F. A statement of cash flow is a single item statement because it reports the change…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: All those assets which are converted into cash in the normal course of business within one year are…

A: Current assets: Current assets means those assets which are expected to be converted to cash within…

Q: Using the Exhibit below, assume that the amount of Net Income on the Income Statement for the year…

A: Cash Flow Statement: A cash flow statement is a kind of financial statement that offers aggregate…

Q: I just want a cash flow statement: Operating Activities net income depreciation and amortization…

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Choose the word or phrase that is defined or indicated. 1. Obligations expected to be settled…

A: Balance sheet of a corporation represents financial position on a particular date. It contains…

Q: What kind of assets are cash and other assets that are expected to be converted to cash or sold or…

A: The financial statement consists of mainly three statements Income statement Balance sheet Cash…

Q: An entity has the following assets and liabilities below. Illustrates current and noncurrent assets…

A: The assets which become realizable in cash or can be used in the operations of the business within…

Q: Using the Exhibit below, assume that the depreciation expense on the Income Statement for the year…

A: Non Items in cash flow - While preparing cash flow through indirect method. It starts with net…

Q: Item 6 of 25 In cash flow analysis, the cash flows from operating activities Select the correct…

A: Cash flow from operating activities is an essential component reported in the cash flow statement.

Q: some examples for these conditions؟ Purchase and sale of assets Increase or decrease in cash & cash…

A: The accounting equation justifies the rules and nature of accounting means the double entry…

Q: What is unique about reporting current assets? Current assets are reported after they are converted…

A: Current assets can be exchanged for cash within a year.

Q: For each case of financial assets that are not related to one another, explain along with the…

A: Financial assets can be referred to as the contractual rights and obligations which are held by the…

Q: An entity reported the following data for the current year. What amount should be reported as income…

A: Income from continuing operations refers to the net income which is distinguishable in the income…

Q: The following information is from a new business. Assets - Liabilities = Owner’s Equity End of…

A: As per the accounting equation, assets are always equal to the sum of liabilities and owner's…

Q: hen cash has been received by the company prior to the performance of service, it should be recorded…

A: As per the guidelines, only one question is allowed to be solved. Please upload different questions…

Q: depreciation is deducted from net profit for the year income tax expense is added back to net…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: classification of the changes below into Operating, investing and financing activities for statement…

A: The Numerical Has Covered the concept of cash flow statement . The Cash flow Statement has divided…

Q: Changes to net working capital are categorized as: a. cash flow from operating activities.…

A: Cash flows of company are categorized into 3 parts : Operating, Investing and financing activity

Q: Indicate whether each of the following would be added to or deducted from net income in determining…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: a) Calculate the non-current asset additions for the year {Hint: you will need to complete a T…

A: (a) Non-Current Assets at NBV PARTICULARS AMT ('000) PARTICULARS AMT ('000) B B/FWD 70,500…

Q: The purchase of a long-term asset is classified in the statement of cash flows as a(n) a. Operating…

Q: QUESTION 1 Which of the following should be shown on a statement of cash flows under the financing…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is true about the operating cycle concept? It causes the distinction between…

A: Operating Cycle: The operating cycle is the time required for a company's cash to be put into its…

Q: based on the ratios what can you say about the company's liquidity? Is it liquid enough to convert…

A: Liquidity is referred as an ease with an asset or security, which gets converted into the ready cash…

Q: The basis for classifying assets as current or noncurrent is conversion to cash within Select one:…

A: Current asset are those assets where the assets are convertible into cash with an operating cycle or…

Q: Fill in the blanks with these terms: tangible asset, income statement, cash, statement of cash flow,…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Which of the following is an advantage of cash basis accounting vs. accrual basis accounting? It…

A: Answer:- correct option is It provides a more accurate representation of cash generated in a…

Q: If a gain of $8,077 is realized in selling (for cash) office equipment having a book value of…

A: The cash flow statement includes the amount of cash received or paid.

Q: . Why does the company add back depreciation to compute net cash flows from operating activities?…

A: 1. Cash flow statement is a statement which shown the flowsof cash used/flow to the entity. Since…

Q: 5. What is a Current Assets? A. It is cash or cash equivalent which is not restricted for current…

A: Given are the various mcq related to accounting and finance.

Q: Answer TRUE or False to the following statements/questions: D) The financing activities section of…

A: Since you have posted question with multiple sub-parts , we will do the first three sub-parts for…

Q: Which of the following will be reflected in the "Cash flows from operating activities" of a…

A: Cash flow statement is a statement which shows all cash inflows and cash outflows of the business…

Q: Matching Type Put a Check for the answers. Statement of financial position. Current assets…

A: A statement of financial position refers to the statement that is prepared at the end of the…

Q: Suppose you need to quickly determine how much money your firm received from the sale of equipment…

A: Financial Statements is the statement which contains all the monetary information of the entity…

Q: Current assets include cash and other assets that are reasonably expected to be converted to cash or…

A: Current Assets: Current assets are those classifications of assets that can be converted to cash…

Q: 1. Indicate under which activity (operating, financing, investing) the following accounts belong in…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Statement I: In accordance with PAS 1 par. 66D, an entity shall classify an asset as current when…

A: Cash Equivalent:-These are those securities that are readily saleable in the market. These are…

Q: An assumption inherent in a company’s IFRS statement of financial position is that companies recover…

A: IFRS are the international financial reporting standards which describes the rules and principles…

Question

The characteristics of current assets are (Choose the INCORRECT answer)
a) They are converted to cash within a year
b) They consist of short and long term financial assets and intangible fixed assets
c) They are considered liquid assets
d) They are used in the daily operations of the firm

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

The gain on sale of equipment is deducted from net income to arrive at operating cash flows because a. the sale of long-term assets is an operating activity. b. the gain reveals the total cash received. c. all of the cash received from the sale is reported in the operating section. d. All of these. e. None of these.
Current assets include cash and other assets that are reasonably expected to be converted to cash or consumed during one year or within the normal operating cycle of the business if the operating cycle is longerthan one year. All other assets are classified as various types of noncurrent assets. In addition to cash andcash equivalents, current assets include short-term investments, accounts receivable, inventories, and prepaid expenses. Other asset classifications include investments; property, plant, and equipment; intangibleassets; and other assets
What kind of assets are cash and other assets that are expected to be converted to cash or sold or used up, usually within one year or less, through the normal operations of the business? Group of answer choices investments fixed (plant assets) cash current assets
The assets that can be easily converted into cash within a short period of time that is one year or less are known : a. Fixed asset b. Intangible assets c. Investments d. Current assets
What do current liabilities and current assets have in common?a) Current assets are claims against current liabilities.b) If current assets increase, then there will be a corresponding increase in currentliabilities.c) Current liabilities and current assets are converted into cash.d) Current liabilities and current assets are those items that will be satisfied andconverted into cash, respectively, in one year or one operating cycle, whichever islonger.
Which of the following statements is false? [A] cash and cash equivalents is always presented under current assets [B] all economic resources that are sold, realized, or consumed more than 12 months after reporting date are always considered noncurrent assets [C] those assets held for trading are presented under current assets [D] assets are economic resources that are expected to provide probable future economic benefit and have a value or a cost that can be measured reliably
Choose the word or phrase that is defined or indicated. 1. Obligations expected to be settled in the next year or operating cycle. select an appropriate term 2. Statement showing assets, liabilities, and equity at a point in time. select an appropriate term 3. Present obligations of an entity to transfer economic resources as a result of past events. select an appropriate term 4. Resources expected to be used, sold, or converted to cash in one year or the operating cycle, whichever is longer. select an appropriate term 5. Tangible long-lived assets used in regular operations. select an appropriate term 6. Economic rights or…
Fill in the blanks with these terms: tangible asset, income statement, cash, statement of cash flow, accounting equation, inventories, financial accounting, aging schedule, balance sheet, accumulated depreciation, working capital, periodic method. ________Is based on a cycle of cash outflows and Inflows ________are stocks of goods held or used in production, delivery of services, or for sale. ________The most essential element of working capital is _______The major accounting statements are the _______ , and .________ An ________ shows how much time has passed since the date of the report and the date the still uncollected bills were issue to patients. The_______ is the full amount of the depreciation that has been taken on depreciable equipment over the years it is owned. A = L + NA is known as the ________ ________ consist largely of keeping the financial history of the organization. The________ of inventory requires the organization to take a physical count to determine…
All those assets which are converted into cash in the normal course of business within one year are known as [A] fixed assets [B] current assets [C] fictitious assets [D] wasting assets
The basis for classifying assets as current or noncurrent is conversion to cash within Select one: a. the operating cycle or one year, whichever is longer. b. the accounting cycle or one year, whichever is shorter. c. the accounting cycle or one year, whichever is longer. d. the operating cycle or one year, whichever is shorter.
Matching Type Put a Check for the answers. Statement of financial position. Current assets Liabilities Current liabilities. Obligations expected to be liquidated through use of current assets. Statement showing financial condition at a point in time. Probable future outflows of economic benefits Resources expected to be converted to cash in one year or the operating cycle, whichever is longer
Which of the following statements is true? a) Tangible assets lack physical substance. b) Tangible assets have physical substance. c) Tangible assets will be consumed in a year or less. d) Tangible assets will be consumed in over a year.